Algeria's state-owned energy company, Sonatrach, and Saudi Aramco have announced increases in the official selling prices of liquefied petroleum gas (LPG) for October 2026. The price hikes reflect the ongoing trends in the global energy market and its close link to crude oil prices. Sonatrach raised the price of propane by $110 per ton to $670 per ton for October 2026, up from $560 per ton in September, representing a 20% increase.
The price of butane was also increased by $140 per ton to $750 per ton, up from $610 per ton in the previous month, marking a 23% rise. These increases will impact the Mediterranean and Black Sea markets, where Algeria is a major supplier and price-setter. Turkey, a significant importer of Algerian LPG, will be particularly affected by these changes. The price adjustments are expected to give Sonatrach significant weight in the Mediterranean and Black Sea markets.
Saudi Aramco also announced increases in its official selling prices for LPG in October 2026. The price of propane rose by $55 per ton to $680 per ton, up from $625 per ton in September. The price of butane increased by $70 per ton to $730 per ton, up from $660 per ton in the previous month. These increases represent an 8.8% rise in propane and a 10.6% increase in butane.
The price hikes by Sonatrach and Aramco are attributed to the rise in crude oil prices and increased demand for fuel in global markets. LPG, also known as cooking gas, is a mixture of propane and butane extracted from crude oil refining processes. Its prices move in line with crude oil trends, as well as supply and demand dynamics, shipping costs, and seasonal conditions in importing markets.
LPG is used in various sectors, including cooking, heating, transportation, and as a feedstock in petrochemical industries. The properties of propane and butane, particularly their boiling points, determine their usage and demand in different markets. Algeria's LPG production has been significant, with the country ranking first among Arab oil-producing countries in 2024, producing approximately 293.8 thousand barrels per day.
Despite a slight decline from 2023, Algeria maintained its lead with a notable difference from other Arab countries. In contrast, Saudi Arabia produced around 31.8 thousand barrels per day of LPG in 2024, up from 24.8 thousand barrels per day in 2023, representing a 28.2% annual increase.
The recent price increases by Sonatrach and Aramco reflect the ongoing trends in the global energy market and are expected to impact LPG prices in the Mediterranean and Black Sea regions. The changes will likely have significant implications for countries such as Turkey, which relies heavily on Algerian LPG imports.
Key points
- Algeria's Sonatrach raises LPG prices for October 2026, citing global energy market trends and increased demand.
- Saudi Aramco also increases LPG prices for October 2026, reflecting rising crude oil prices and global demand.
- Algeria remains the top producer of LPG among Arab oil-producing countries, with a significant impact on regional markets.
